An economist says many farmers might see crop insurance payments affected by falling commodity prices this year.
American Farm Bureau Economist John Newton says for the sixth straight year, the harvest price for corn was below the spring planting price and soybeans had the largest drop in harvest price since 2014, falling $1.56 a bushel. “Because the price decline has been so large, yields that are very close or slightly below the APH ( ) could end up triggering some crop insurance payments because the farmers have experienced such steep price declines.”
But, Newton says record crop yields for many growers might reduce or eliminate crop insurance indemnities for many farmers – despite large price declines in the cash and futures markets.
